Backpacking & Rental Apartments
In this feed, I would like to take a moment to examine the pros and cons of rental apartments.
Every human being needs shelter and a roof over their head. This is a given, however the decision regarding the type of accommodation to look for is somewhat more complicated for each individual.
If you are a student straight out of university, just got your first good job, you will most likely be looking for a rental apartment.
Depending on your income, how much you are willing to spend, your preference of living alone or with someone and so on, you will search for a flat meeting your needs as closely as possible within a reasonable price.
This may mean that if you for example, value a great location over living independently, you can be flexible in finding and sharing a rental apartment in your desired location, even if for a higher price.
What are some of the pros of living in a rental apartment?
First of all, you are free. If you are nesting in one place but do not want to get tied down, or are planning to get away and travel in the future, move countries or even be re-located at work, it is much easier to make these changes while living in a rental apartment.
Additionally, you are on average required to sign a contract for a rental for either 6 or 12 months. This means that you do not have to take credits from banks and then pay them off for the next 20-30 years.
Keep in mind, that if you do not manage your payments well and on time, your interest will rise and your debts will increase. Fortunately, when living in a rental apartment, this is not the case.
Another advantage of a rental space is having the possibility to sub-rent your flat. If for example, you sign a contract for one year, but for whatever reason, spend several months away from home, being able to sub-rent your flat to someone else is a great option. This allows you to keep your rental contract and apartment, while someone else is paying for it when you cannot physically use it.
Let’s take a look at some of the cons. First and foremost, the most important disadvantage that comes to mind when you bring up a rental apartment, is the fact you are paying someone a huge chunk of money over the years, and there is no return on investment involved.
When you take a mortgage from a bank on a house, you are required to make monthly payments for multiple years, however down the road, you can one day be proud to say “I own this house”.
When referring to a rental apartment, you can live there and pay your rent diligently for 100 years, but will still never own it. That is the single biggest disadvantage between homes and rentals.
If you are thinking about having a family, investing in your children’s future and so forth, unfortunately a rental apartment will not provide you with the necessary safety net and comfort. If this is your goal, a mortgage and house is your number one option.
However, with all this said, rental apartments are great for college students, or people just out of university beginning to work in their field. A rental apartment will give you all the necessities of life, you can choose to live downtown or any other desired location, and in general, it allows for more convenience and liberty.